Transform Property Consultinghttp://www.transformproperty.co.in
Fri, 11 May 2018 08:44:26 +0000en-UShourly1https://wordpress.org/?v=4.9.6Registration and Stamp Duty Rules in Keralahttp://www.transformproperty.co.in/registration-and-stamp-duty-rules-kerala/
http://www.transformproperty.co.in/registration-and-stamp-duty-rules-kerala/#commentsMon, 02 Apr 2018 03:57:47 +0000http://www.transformproperty.co.in/?p=3391A brand new financial year has just begun and the changes proposed in the annual budget 2018-19 will be in effect. Let us look at the major changes in the Real estate sector, particularly in Registration and stamp duty, effective 1st April 2018. Registration and Stamp Duty The current stamp duty rate for gift, partition,...Read More→

]]>A brand new financial year has just begun and the changes proposed in the annual budget 2018-19 will be in effect. Let us look at the major changes in the Real estate sector, particularly in Registration and stamp duty, effective 1st April 2018.

Registration and Stamp Duty

The current stamp duty rate for gift, partition, settlement and release deed is Rs.1000/-. These rates will be revised and these documents will be charged a stamp duty of minimum Rs.1000/- or 0.25% of sale value, which ever is higher.

The fee for obtaining certified copy of documents from Sub Registrar Offices (SROs) will be increased to Rs.5 per page in case of documents of more than 10 pages. For documents of 10 pages or below, the existing rate will continue.

Stamp duty of agreements executed for public works or service level agreements will be levied at 0.1 percent of the total contract value subject to a maximum of Rs.1 lakh.

The valuation rules as per Income Tax Act will be enacted for valuation of all buildings other than flats or apartments.

The existing fair value of land in Kerala will be increased by 10 percent.

The existing stamp duty on Power of Attorney for transfer of immovable property between family members will be increased from Rs.300/- to Rs.600/-.

Documents relating to surrender of leases before the lease period will be levied a stamp duty of Rs.1000/-.

All fees and charges on services related to property transactions in Kerala will be increased by 5%.

]]>http://www.transformproperty.co.in/registration-and-stamp-duty-rules-kerala/feed/1How to select the ideal plot for house construction?http://www.transformproperty.co.in/ideal-plot-for-house-construction/
http://www.transformproperty.co.in/ideal-plot-for-house-construction/#respondThu, 15 Mar 2018 13:08:48 +0000http://www.transformproperty.co.in/?p=3369How to choose the ideal plot for house construction? A home is more than a mere structure of bricks and mortar. It is a place where you can let go of your worries and live peacefully. So, what does it take to build a dream home? Building a home requires careful consideration of many aspects...Read More→

A home is more than a mere structure of bricks and mortar. It is a place where you can let go of your worries and live peacefully. So, what does it take to build a dream home? Building a home requires careful consideration of many aspects – such as a friendly neighbourhood, proximity to basic amenities, a wonderful design, to name a few. Most importantly, the selection of the plot for house construction plays a vital role in the construction of a home.

Let us look in detail on the important aspects that you must consider while selecting a plot for house construction:

1) Shape of the plot – The shape of the plot determines the layout of your home design. Clearly, a plot which has rectangular or any other regular shape provides a uniform space for house construction. If the plot is irregular shaped, there is a chance that part of land gets wasted here and there. This also leaves unnecessary random space for setbacks.

2) Setbacks – A setback is a part of land around the constructed building that has to be left free, as per regulations by the local self governing body. Significantly, setbacks in a plot allows the house to have ample sunlight and ventilation for healthy living conditions.

Moreover, it ensures that balconies or windows are not jutting out into the neighbouring homes. Or worse, the water from their roof is not draining into your house!

So while selecting a plot, verify that it has enough space to include the necessary setbacks. Also, ensure that there are no violations in setbacks in neighboring plots/houses. If in doubt that the plot adjacent to the one you are considering violates the the setback rules, go for a different option. This is more of a legal compliance than a convenience factor.

3) Frontage and Elevation: Apart from the functional aspects, the look and feel of the plot is also equally important. The Frontage and Elevation are the two factors that ensures that your new house has a good view as well.

Frontage refers to the space between the front of the house and the boundary wall facing the street. And elevation is the view of the house from the front. Undoubtedly, a plot with a wide frontage leads to better design of the house with good elevation. While selecting the plot, keep in mind that a narrow frontage results in shrinking of elevation, spoiling the look of the house.

4) Depth of the plot:Depth of the plot is the distance from the front boundary to the rear boundary of the plot. For a good house design, it is recommended to go for a rectangular plot where the depth of the plot is in proportion to the frontage of the house.

This will lead to a perfect design layout in which the rooms have enough space and are located sideways, resulting in good elevation too! A narrow frontage coupled with wide depth of the house ends up in narrow elevation and corridor style room layout.

5) Height of the plot from the road: Choose a plot that is at par with the road. This helps in easy implementation of good drainage system and also prevents water logging and flooding during monsoon. Avoid selecting a plot with lower elevation, as it comes with additional hassle of landfill to raise the level.

6) Soil/Strata:The type of soil in the plot determines the foundation of the house. A plot with loose soil or strata requires solid and deeper foundation. Apart from higher cost of laying foundation, such plot may also incur additional cost of landfilling.

By checking the quality of soil, you can know before hand what sort of foundation is required for that plot. Soil testing methods like moisture content test, dry density of soil and specific gravity of soil helps to determine the type of soil. These tests are simple and can be done with the help of a specialist. This way you can assure that the choice of foundation of your house fits in your budget.

7) Vaastu Considerations: Indian science of architecture, Vaastu Shastra puts forth features of an ideal plot for house construction as:

A plot which has a regular shape – such as square or rectangle

Avoid a small plot between bigger plots and buildings

A plot facing a T junction is also not considered good. However, it depends on the orientation or direction of the junction. For example, a T junction oriented towards east-north east is considered good.

Avoid a plot in close proximity to public places such as temples, hospitals etc

Ideally, opt for a Vaastu consultant who can guide you to choose a Vaastu compliant plot for your family.

Selection of a right plot for building your dream home can be a big task in itself. But as the saying goes well begun is half done. Keep in mind these factors while selecting a plot for house construction. With the selection of the right plot and expert help in construction, building your own paradise would never be a hard task!

Our experts at Transform Property Consulting can help you in selecting the right plot for house construction as per your needs. We are always available to answer any of your queries in this regard.

]]>http://www.transformproperty.co.in/ideal-plot-for-house-construction/feed/0Home Buying Guide | Tips for the first time home buyerhttp://www.transformproperty.co.in/home-buying-guide/
http://www.transformproperty.co.in/home-buying-guide/#respondTue, 13 Feb 2018 03:05:09 +0000http://www.transformproperty.co.in/?p=3315Home Buying: A Guide to Making Smart Choices A roof over our head that we can call our own; our “Dream Home”; is the biggest milestone in our lives. Therefore, when it comes to home buying, there are always a number of concerns and questions running through our minds. Is it too early for us...Read More→

A roof over our head that we can call our own; our “Dream Home”; is the biggest milestone in our lives. Therefore, when it comes to home buying, there are always a number of concerns and questions running through our minds. Is it too early for us to invest? We loved the property, but can we really afford it? Is the price fair? What if we come across something better later? Is home loan the best alternative to go for? Most of these thoughts are not unfamiliar to us.

Making decisions in regard to home buying requires a lot of clarity. One should never be overwhelmed or emotional when it comes down to such decisions. The emotion in relation with their dream home often overclouds people’s senses thus leading to incorrect decisions. Many home-buyers bite off more than they can chew and get in a fix later.

Here are a few tips which will save you from the remorse while investing;

Prepare a Home Buying Budget

Make a proper budget, taking into account the expenses in relation with home buying. The expense should account for the EMI, in case you plan to avail a home loan as well as the ancillary costs related to the house.

The advertised price of the property often doesn’t factor in ancillary costs like car parking charges, maintenance, and gym membership charges etc.

The home buying budget will help you to figure out the amount of money that will be left every month to meet your expenses. Ensure that the property you plan to purchase will satisfy your present requirements as well as stay within the budget. In case you feel skeptical, carry out a trial run for few months. Plan your expenses according to the budget during this time. This will help you to understand if the property is actually affordable.

Calculate your Home Loan Interest

Most people get over ambitious and do not put in enough thought into this aspect. They avail huge loans which often backfire and then they struggle to make ends meet. The home loan you avail should not have an EMI which accounts greater than 50 percent of your net household income.

A home loan at 9% interest for 25 years will incur an EMI of approx. Rs 840/- per lakh.

If you go for a home loan, ensure that you have the ability to handle an unexpected turn in the interest rate cycle. Ensure that you choose a loan that fits your capability. A huge loan will stretch your finances to its utmost limit. Also, a higher EMI may mean sacrificing other monetary goals. Such a sacrifice may later leave you in remorse.

Will this investment make you financially unstable?

Indulge in home buying only at a stage where you are confident regarding your financial stability. Since owning a home is considered a sign of achievement, many people jump into this decision way too early in life. This may seriously hamper their other financial goals like savings for children’s education, retirement etc. There is a general belief that one could easily sell off a house when in difficulty. But it is not as easy as it appears. Finding an apt buyer may take up to months. Also, considering the very high expenses in regard to registration and transfer charges, one may not earn the expected amount. Hence, it is advisable to purchase a home only if you plan to live in it for at least 10 years.

Prepare ahead of time

Expect the unexpected. Factor in the worst case scenarios and plan your finances in accordance. Consider the worst case possibility of losing your job. This would mean a stop in your regular income. Ensure that you have enough money kept aside to meet your basic requirements. You should also take an insurance cover big enough to cover all the outstanding loans. Also, have an emergency fund that can take care of your expenses for at least 6 months. Do not use this fund to pay the down payment or the EMI. When you decide to indulge in home buying, ensure that you have enough investments that can be liquidated. These investments should also be quickly accessible during emergencies.

Be aware of the Rental Rates in the neighbourhood

Another aspect that concerns home buying is the rental rates in the area. Many people invest with the idea of paying the EMI with their rental income. However, the rental rates in Indian cities are quite low. The abundance of vacant houses is causing a further drop in the rental rates. Hence, it may not be wise to completely depend on this option. Before the purchase, inquire about the rental rates in the area. It is recommended to opt for highly populated areas where a drop in rental rates is highly unlikely. Also, if the delivery of the project is delayed, then the absence of rental income could pose a trouble while paying the EMI. Ensure that you purchase from builders with a good reputation to avoid delays.

Is the Resale Value Good?

Most people focus solely on the budget of the property. They fail to consider the resale value. The resale value often decides the extent to which the investment was successful. The location of the property plays an important role in deciding the resale value. It is recommended to select a place adjacent to the prime location of a city where the chances of rising in prices are high. Another important aspect in home buying is the property value in comparison with the interest on the loan. If the price of the property does not appreciate at a rate higher than the amount paid as loan, then the investment is a loss.

A home is a lifetime investment. Therefore, it is important to make well-informed decisions regarding it. Investing without enough thought could leave you in remorse for a lifetime. It could also shatter the concept of your “Dream Home”. Investing at the right time and at the right place is of great significance.

]]>http://www.transformproperty.co.in/home-buying-guide/feed/0What is Setback in Building Construction?http://www.transformproperty.co.in/what-is-setback-in-building-construction/
http://www.transformproperty.co.in/what-is-setback-in-building-construction/#respondTue, 06 Feb 2018 10:27:03 +0000http://www.transformproperty.co.in/?p=3297Setback in Building Construction in Kerala There are many aspects and terms in the field of construction that the common man is unfamiliar with. The lack of knowledge in this arena often leads to confusion. This leads to complications in building construction. Setback in building construction is one such aspect which is of prime importance...Read More→

There are many aspects and terms in the field of construction that the common man is unfamiliar with. The lack of knowledge in this arena often leads to confusion. This leads to complications in building construction. Setback in building construction is one such aspect which is of prime importance in this field.

What is “Setback” in building construction?

In simple words, a setback is the minimal open space required around any building or structure. The Kerala Municipality Building Rules sets the regulations regarding setback in building construction in Kerala.

Setbacks are classified as front setbacks, rear setbacks and side setbacks.

The specifications regarding setbacks vary from one area to another. The regulations primarily depend on the size of the plot. Other factors are whether it is one-side or multi-side open plot, the width of the road on which the plot is located and the locality of the plot.

What is the significance of setback in building construction?

Setback ensures that an individual building or structure receives adequate natural light and has sufficient ventilation. It also protects entities such as water bodies which are adjacent to buildings from pollution by construction and human inhabitation.

Setback ensures that buildings don’t overshadow each other such that it obstructs provisions for sunlight and ventilation. It protects buildings from noise-causing elements such as nearby industries, airports etc. The regulations also ensure that each building has a vehicular access considering the case of emergencies.

Guidelines for Setbacks in Kerala constructions

Setbacks for construction of residential buildings

Every building having upto 10 metres height shall have a minimum front yard of 3 metres depth, rear yard of 2 metres depth, side yard of 1.2 metres on one side and 1 metre on the other side. For buildings whose height exceeds 10 metres, the setback increases at the rate of 0.5 metre per every 3 metres height exceeding 10 metres.

The minimum distance between the plot boundary adjoining any street and the building shall be 2 metres.

The minimum distance between central line of a street and building shall be 5 metres.

In case of a group of buildings within a plot or adjoining plots, the land remaining after accounting for mandatory front, rear and side yards shall be considered as the buildable area.

There is a regulatory distance between various blocks within the area. The minimum distance between buildings is 2 metres for buildings having upto 10 metres height and 3 metres for buildings exceeding that height.

In case a room intended for human habitation does not share boundaries with front, side or rear open air spaces, then it shall be provided with an interior open space of width not less than 2.4 metres.

When a part of the plot is surrendered for road development, the setback from the road boundary to the building is reduced. The reduction depends on the breadth of the land surrendered on that side. The minimum distance from the boundary of the proposed road shall be 3 metres.

Set Back for buildings in small plots (below 3 cents)

The minimum depth of the front yard shall be 1.80 metres. The mean depth shall not be less than 1.80 metres if the peculiar shape of the plot does not allow the required depth laterally. In this case, at any given point, the minimum permissible depth shall be 1.2 metres.

The minimum open space on any one side of the building shall be 90cms and another side shall be 60 cms. This is applicable provided that no opening other than ventilator at a height of 2.20 metres from the floor level is provided on the side having only 60 cms open space from the boundary. On the 60 cms side, it is possible to reduce or completely eliminate the setback such that there is no opening of any manner on that side of the building. This is possible only if the owner of the plot on the respective side voluntarily agrees to the same.

The average open space on the rear side shall be 1 metre with the minimum being 0.50 metre.

Setback for Wells

The set back for a well from any street is same as that required for a building. In addition, there shall be 1.50metres setback from any other boundaries.

The well may be located within or adjoining or away from the building on the plot.

Leech pit, sock pit, refuse pit, earth closet or septic tank shall not be allowed or made within a radius of 7.5 metres from any existing well which is used for the supply of water or within 1.20 metres distance from the plot boundaries.

It is important to understand the significance of concepts such as setback while indulging in construction. The awareness regarding these regulations in construction saves the owner from any possible trap and hassles later on.

]]>http://www.transformproperty.co.in/what-is-setback-in-building-construction/feed/0PMAY – All you need to know about Pradhan Mantri Awas Yojanahttp://www.transformproperty.co.in/pmay/
http://www.transformproperty.co.in/pmay/#respondWed, 17 Jan 2018 10:16:10 +0000http://www.transformproperty.co.in/?p=3153PMAY – Urban (Pradhan Mantri Awas Yojana) The term ‘EMI’ scares everybody when it comes to owning a house. Especially in an urban location where the cost of affordable housing is sky rocketing and EMIs take up a major chunk of the monthly income. Well, there is a good news for all planning to own...Read More→

The term ‘EMI’ scares everybody when it comes to owning a house. Especially in an urban location where the cost of affordable housing is sky rocketing and EMIs take up a major chunk of the monthly income. Well, there is a good news for all planning to own their first house or renovating an existing one. Pradhan Mantri Awas Yojana (PMAY) is a scheme that grants you financial support to own your house.

What is PMAY?

PMAY is an initiative launched by the Government of India in 2015. The objective of the scheme is to provide ‘Housing for all’ a reality by 2022. With PMAY, government envisions of providing affordable housing with sanitation, electricity and water supply for every family in India. PMAY offers financial support to slum dwellers, EWS (Economically Weaker Section), LIG (Lower Income Group), MIGs (Middle Income Group) to own a house. It could be in the form of full grant, partial grant or subsidised loans depending on the income slab.

What are the objectives of PMAY?

Essenitally, PMAY aims to provide financial support to people planning to own a house who can’t afford it on a whole by themselves. This scheme puts focus on women, minority, transgenders, differently abled, senior citizens and working population altogether, making it a scheme for all.

The objective of PMAY (Urban) is to benefit urban population to build affordable constructions using sustainable and eco-friendly measures. PMAY projects to cover entire urban area of the country including 4041 statutory towns with prime importance on 500 Class-I cities. PMAY allows an individual urban family to enjoy a home loan at a 3% to 4% subsidised interest rate for a tenure of 20 years.

Who can avail the benefits of PMAY Urban?

Listed below are the categories of individuals who can avail the benefits of PMAY Urban:

A family whose household annual income under Rs.12 lakhs (MIG-1) can avail home loans of upto Rs. 9 lakhs with an interest rate subsidy of 4%.

A family whose annual income is between Rs. 12 lakhs to Rs.18 lakhs (MIG-2) can avail home loans of upto Rs.12 lakhs with an interest rate subsidy of 3%.

People planning to buy or construct a new house. (No benefits to buy an already built house)

A family comprising of husband, wife and unmarried children with none owning a house in their name, in any other parts of the country.

Earning children (married or unmarried) can avail the benefits of PMAY even if their parents own a home. It will then be considered as two separate households.

A family who has not availed any other housing-related scheme issued by Indian Government.

A family who already own a house and wants to renovate it.

To identify the deserving candidates, government uses The Socio Economic and Caste Census of 2011 (SECC 2011). The benefit of PMAY for Urban candidates, equates to a lowered EMI or faster loan repayment through CLSS.

What is CLSS or Credit Linked Subsidy Scheme?

CLSS is the PMAY benefit given against the home loan of the beneficiary. The subsidy amount is credited upfront in the loan account of the applicant. This will in turn reduce the outstanding principal amount. Thereby, bringing down the effective EMI or repay the loan faster with original EMI.

Home loans approved or under consideration since January 2017 are eligible for interest subsidy under CLSS.

What is the eligible size of building as per PMAY Urban?

The carpet area of building has to be within 110 square meter(1184 sq.ft) for MIG-1 and 150 square meter(1615 sq. ft) for MIG-2 to be eligible for PMAY. Carpet area is the area within the walls and does not include outer walls, balcony and other common areas.

What is the procedure of availing PMAY?

First of all, check if you are eligible to apply for PMAY by looking for your name in the beneficiary list (Link: http://pmaymis.gov.in/). Alternatively, by furnishing the required documents, you can request the lending institution to notify you of the same. If eligible, you can apply for a Pradhan Mantri Awas Yojana online with the followings steps:

Enter 12 digit Aadhar number. You can then go to the application page.

Fill in personal details, current address details, income details and bank details

Select ‘I am aware of’ option at the end of the page and click on the ‘save’ button

Once you click ‘Save’ you will get an application number . Please save it for future reference

Once done, download and take a print copy of the duly filled application form. Submit it at the nearest CSC office and bank or financial institution with the required documents to process it along with the home loan.

The home loan providing institution will claim the subsidy benefit from Central Nodal Agency (CNA) like the National Housing Bank (NHB) or HUDCO (Housing and Urban Development Corporation). CNA will investigate for any discrepancy, including multiple requests from the same beneficiary. On approval from CNA, the subsidy amount will be given to the borrower’s bank (called as Direct Benefit Transfer or DBT). The amount will then be credited to the loan account of the beneficiary. This will reduce your outstanding principal, resulting in lesser EMI.

Is PMAY eligible for income tax exemption?

According to Income Tax Act of 1961, resident Indians are eligible for tax benefits on principal and interest components of home loan (even after PMAY subsidy). Under Section 24(b) the exemption limit for interest is Rs. 2,00,000 and under Section 80C the exemption limit for principal is Rs.1,50,000.

Pradhan Mantri Awas Yojana is a real boon if you are planning for your new house. To understand and execute PMAY supported home loan in Kerala, get in touch with Transform Property Consulting team.

]]>http://www.transformproperty.co.in/pmay/feed/0How to obtain Building Permit in Kerala : A step-by-step guidehttp://www.transformproperty.co.in/how-to-obtain-building-permit-in-kerala/
http://www.transformproperty.co.in/how-to-obtain-building-permit-in-kerala/#respondFri, 12 Jan 2018 11:38:11 +0000http://www.transformproperty.co.in/?p=3130In the previous blog, we have seen the essentiality of a permit and the types of permits. Now let’s look at the step by step procedure to obtain a Building Permit in Kerala. A Step-by-step guide to obtain a Building Permit in Kerala Identify the Property First of all, identify the plot where you plan...Read More→

]]>In the previous blog, we have seen the essentiality of a permit and the types of permits. Now let’s look at the step by step procedure to obtain a Building Permit in Kerala.

A Step-by-step guide to obtain a Building Permit in Kerala

Identify the Property

First of all, identify the plot where you plan to construct the building. Consult your architect and prepare a sketch that complies with the Kerala Municipality Building Rules (KMBR) or Kerala Panchayat Building Rules (KPBR) according to the jurisdiction under which your property falls.

The sketch should include the following details

Site layout

Building elevation

Sections

Site plan (plot width, setbacks, access road width)

Floor plan (all floors)

Roof or terrace plan

Details of septic tank and soak pit

Rain water harvesting

Location plan

An application for a building permit in Kerala should also cite details like

Site location, Whether the property is for Residential or commercial use, An Index of all drawings submitted, Number of sheets, Date, Names of Draftsman & Reviewer, Scale, Location details including details of Village/Taluk/District, Survey number and resurvey number of the property, Ward number, Extent (in arcs and cents), Proposed building area, Plinth and carpet area of all floors, Plinth and carpet area of the car porch, Total area, Coverage, FAR (Floor Area Ratio is calculated as the ratio of the Total floor area on all floors to The Plot Area), Permit area, Joinery schedule etc.

Get your documentation up-to-date

While the Architect works on Step #1, you should also get the following documentation related to the property up to date

Possession certificate (This is an online document)

Latest land tax receipts

Copy of the “Aadharam” or Title Deed

Get online approval from the Local self governing body

Application for a building permit can be made only by a licencee at the Local Self governing body (Panchayat, Municipality or Corporation) under whose jurisdiction the property falls. The licencee could be an Architect, a licenced draftsman or a licenced engineer.

The documents mentioned in steps#1 and #2 above are then handed over to the licencee. The licencee then applies for an online approval for the building permit (e-filing) at the local self governing body office.

Acknowledgment from the Local self governing body

The application has to be acknowledged by the authorities concerned at the local self governing body.

Submission of the Building Permit application by a licencee

Hard copies of the following documents should be filed and submitted by the licencee.

List of documents for a Building permit application.

Possession certificate (This is an online document)

Latest land tax receipts

Copy of the “Aadharam” or Title Deed

3 copies of the Sketch or Sanction drawing

Copy of Architect’s or Licencee’s licence

Online acknowledgment certificate issued by the local self governing body

Submit the file containing these documents at the local self governing body. You should submit the relevant original documents also for verification. The local self governing body office will then issue a file number for your application.

Verification by the Building Inspector

The Building Inspector(BI) will then visit your property, assess the veracity of the information provided in your application and submit the report to the Assistant Engineer (AE).

Verification by the Assistant Engineer

The AE will then perform another round of verification and submit the report to the Assistant Executive Engineer (AXE).

Approval of the application

The AXE then approves or rejects the application. For buildings upto 350 sq m (~3700 sq ft), this would suffice. However for larger buildings there would be higher levels of scrutiny and would require further levels of approvals. This would differ from one local self governing body to another.

Fee payment and issue of Building Permit

Finally, for approved applications, you can submit the fees at the local self governing body office. The building permit will then be issued and sent to your registered address.

To conclude

Building Permit is a mandatory documentation for constructing a building in Kerala. The procedures for obtaining the permit are now relatively simpler and easier to use.

Have further questions or require assistance in obtaining a building permit in Kerala?

Let us know by initiating a Whatsapp chat or by commenting below. You can also contact us here.

]]>http://www.transformproperty.co.in/how-to-obtain-building-permit-in-kerala/feed/0Tips to consider while creating a house planhttp://www.transformproperty.co.in/house-plan-tips/
http://www.transformproperty.co.in/house-plan-tips/#commentsFri, 15 Dec 2017 10:35:09 +0000http://www.transformproperty.co.in/?p=3097Tips for an excellent house plan A roof over one’s head is any man’s dream. But making the dream come true is not everyone’s cup of tea. House construction is a long process from collecting one’s requirements for the house plan, to funding it, to finding a reliable architect and contractor to finally moving in to...Read More→

A roof over one’s head is any man’s dream. But making the dream come true is not everyone’s cup of tea. House construction is a long process from collecting one’s requirements for the house plan, to funding it, to finding a reliable architect and contractor to finally moving in to that dream dwelling.

One of the key aspects to take care of while constructing a house is the house plan or floor plan. The comfort, convenience and usability of your house would depend on how good or bad your house plan or floor plan is. Come, let’s explore some factors that should be considered for making a good floor plan.

One size doesn’t fit all

First and foremost, be aware that one size doesn’t fit all for a floor plan. A floor plan should be appropriate for the plot in which the house is to be constructed. The size and dimensions of the plot, the terrain, the position of the plot with respect to the adjacent roads and surrounding buildings, directions of sunlight and wind are some of the factors that determine the suitability of a floor plan. So do not blindly choose your friend’s floor plan, tailor it to suit your needs.

Know thy needs

The best judge of a floor plan would be you and your family who would ultimately be using the house. Therefore it makes perfect sense to spend some time with your family brainstorming on your needs before finalizing the plan. One you are clear of your requirements, you can approach an architect or an engineer to translate it into paper. Remember a good architect would be able to draw a good plan for you, but only you and your family would be able to add life to that plan.

To level it or not to level it?

The terrain of the property is a key parameter that determines your floor plan. If there are minor ups-and-downs, it would be advisable to fill it with additional earth and level it! However if the terrain is highly uneven, do not spend a fortune on levelling it. Instead plan for an underground floor or a cellar or a car park.

Set out right

It is your property, your house. But don’t be fooled into thinking that you can build it the way you want. The local self governing bodies (Panchayat/Municipality/ Corporation) have set forth a few regulations for house constructions. You should always develop your floor plan based on these regulations. For instance, in Kerala constructions, if your property is above 3 cents, there should be a minimum vacant space of 3m in the front, 2m in the back, 1.3m on one side and 1m on the other. You definitely wouldn’t want your balcony jutting out into your neighbour’s backyard. In construction parlance, this is called the set-out. Follow the Set-outs correctly for obtaining the appropriate building permits and also for your own convenience.

Make use of natural resources

Plan your house in such a way that you make full use of natural resources like sunlight and wind. Before your decide the location of your rooms, review the position of your property well. For example, it is better to avoid placing your bedrooms in the West. This is because the setting sun would heat up the rooms in the West side of the property and a hot bedroom would welcome you in the evenings! It is more appropriate to place the living or dining or TV rooms in this area.

These are minor aspects when it comes to the construction of a house. However it is these little aspects that help transform your dream home into a beautiful piece of art!!

]]>http://www.transformproperty.co.in/house-plan-tips/feed/1How to obtain a Development Permit for Kerala constructions?http://www.transformproperty.co.in/development-permit-kerala/
http://www.transformproperty.co.in/development-permit-kerala/#respondThu, 14 Dec 2017 12:35:52 +0000http://www.transformproperty.co.in/?p=3093Essentiality of a Permit As per the Kerala Municipality Building Rules 1999, the following activities require permits from the Municipal authorities. Develop or redevelop any parcel of land (Development Permit) Construct a building (Building Permit) Make addition or extension or alteration to an existing building Change the occupancy of an existing building from one group...Read More→

As per the Kerala Municipality Building Rules 1999, the following activities require permits from the Municipal authorities.

Develop or redevelop any parcel of land (Development Permit)

Construct a building (Building Permit)

Make addition or extension or alteration to an existing building

Change the occupancy of an existing building from one group to another

Development Permit

An individual who wishes to develop or redevelop any parcel of land should obtain a Development Permit from the Municipality.

The application for a Development Permit is made either directly to the Secretary or online and should be accompanied by the following documentation

Building Plans – Site plan and Service Plan

Proof of land ownership

Proof of payment of fees

Certificate of Registration of the Architect, Building designer, Engineer, Town planner or Supervisor as applicable

Specifications of the Site Plan

It should be drawn to a scale of not less than 1:400

It should show the boundaries of the plot and of any contiguous land belonging to the owner.

The position of the plot in relation to the neighbouring street and its main access.

The name of the street and its width

All existing structures in the plot

The proposed plot subdivision

Access to each plot subdivision.

Layout of any service roads or foot paths

Area within the plot that is undevelopable

Area within the plot that is not proposed to be developed

The North direction and predominant wind direction in relation to the site.

A key map drawn to scale should accompany the site plan. This key map should give full details of the location of the site with reference to all adjacent streets, premises and landmarks within a distance of 30m

What is a Service Plan?

A service plan is a plan showing all the services which will cater to the building other than the civil work. This includes the Electrical line from the post, Plumbing line from outside and inside sources, rain water drain, well, generator, sewage treatment plant, bio gas plant etc. Usually you need to show a circle of 100M radius from the proposed building and mark all the adjacent buildings with their owners’ names, building numbers and survey numbers. These proposals depend on the type of the building and complexity of the project. Under normal circumstances, large projects require a service plan.

Specifications of the Service Plan

It should be drawn to a scale of not less than that of the site plan.

It should show the proposed subdivision of the plot and their uses.

The layout of existing and proposed water supply, electricity, drainage and sewerage main lines

Any other relevant information.

The North direction and predominant wind direction in relation to the site.

Points to note while applying for a Development Permit

The plans should be drawn on paper not less than 24cms * 33cms [A3] in dimensions.

A registered Architect or Engineer or Town Planner or Supervisorll plans should sign and approve all drawings or specifications.

If there are more than one individual owner for the plot, the application should be signed by all and jointly submitted.

]]>http://www.transformproperty.co.in/development-permit-kerala/feed/0Encumbrance Certificate for Property Transactions in Keralahttp://www.transformproperty.co.in/encumbrance-certificate-kerala/
http://www.transformproperty.co.in/encumbrance-certificate-kerala/#respondFri, 27 Oct 2017 04:55:28 +0000http://www.transformproperty.co.in/?p=3045What is an Encumbrance Certificate? It goes without saying that the prime concern of a prospective buyer of a real estate property is to get clear title to it when the transaction is over. This is because a defective title will land the buyer in trouble in future. The first formality to ensure that the...Read More→

It goes without saying that the prime concern of a prospective buyer of a real estate property is to get clear title to it when the transaction is over. This is because a defective title will land the buyer in trouble in future.

The first formality to ensure that the title is not defective is to get an official certificate from the authorities concerned viz; the sub registrar office (SRO). Such a certificate is called an Encumbrance Certificate (EC).

The EC is issued by the SRO in whose jurisdiction the particular property is situated. It has the details of transactions made on the property under reference during the specific period requested for. The facts of any legal liability involving a property are recorded in the books with the SRO. Whenever a valid request is received by an SRO, all such liabilities are listed in a certificate called Encumbrance Certificate.

What are the situations where an Encumbrance Certificate is necessary?

A proposed sale transaction is not the only situation in which an EC is requested for. Listed below are a few other instances where an Encumbrance Certificate is warranted.

Banks and financial institutions, at the time of accepting mortgage of real estate properties as security for any loan or advance, require an Encumbrance Certificate. This is for ensuring that the property to be mortgaged is devoid of any other liability/encumbrance.

Whenever it is necessary to ensure that the owner’s title to a specific property is clear i.e; free from other liabilities, an Encumbrance Certificate is required.

If the land tax or property tax is not updated for 3 years or more, the Village/Panchayat Officer may ask for an EC to update the same.

For a loan against Provident Fund for property purchase and house construction, the Encumbrance certificate is one of the necessary documentation required.

In short, the Encumbrance Certificate is a Prima Facie evidence of whether or not the owner of the property in question has a clear title to the property. Usually, banks and other institutions insist for 13 years’ EC. However instances are not very rare where such institutions insist for EC for longer periods, say 31 years or more. For example, if the title deed is registered on or before 1986, banks insist for EC from that period onwards so that the entry of the title deed is shown.

However, it should be borne in mind is that the EC is not a conclusive proof of a clear title. Why? Let’s examine that in the following lines.

Is Encumbrance Certificate a conclusive proof for clear title?

Numerous mortgages are created everyday in the sphere of banking finance. If all such mortgages are to be registered/recorded with the Sub Registrar Office, the process would become cumbersome, time consuming and expensive. Therefore banks are specially empowered to accept another type of valid mortgages named equitable mortgages. It is very simple in procedure and less expensive. But the biggest handicap of the equitable mortgage is that it is neither registered nor recorded in the books with SRO. This implies that such mortgages are not reflected in the EC. This may lead to fraudulent transactions in the property market.

However, there is another system for verifying the existence of such mortgages, which is called the CERSAI Registry. (Central Registry of Securitisation Asset Reconstruction and Security Interest of India). CERSAI is a company licensed under section 25 of the Company’s Act 1956 and registered by the Registrar of companies.

CERSAI is a central system registry of mortgages and keeps records of charges created and satisfied on a specific asset. It has been formulated to guard against fraudulent transactions arising out of same asset being mortgaged with multiple lenders.

Any public member can get access to CERSAI Registry for examination of records on payment of fees prescribed under the SARFAESI rules 2011).

]]>http://www.transformproperty.co.in/encumbrance-certificate-kerala/feed/0Housing finance in Kerala – Beyond home loanshttp://www.transformproperty.co.in/housing-finance-in-kerala-home-loans/
http://www.transformproperty.co.in/housing-finance-in-kerala-home-loans/#respondSun, 23 Jul 2017 06:29:33 +0000http://www.transformproperty.co.in/?p=2929Bank Loans for Housing Finance in Kerala Are you trying for a housing finance in Kerala and wondering if home loans are the only options? We have some good news for you. In this article we discuss some options for housing finance in Kerala, in addition to home loans, that you can avail of, for...Read More→

Are you trying for a housing finance in Kerala and wondering if home loans are the only options? We have some good news for you. In this article we discuss some options for housing finance in Kerala, in addition to home loans, that you can avail of, for the purchase/construction of your dream home.

Just read on…………..

To avail of bank loans for acquiring house property is, no doubt, a prudent decision because of various incentives in regard to Housing Finance. The Government of India always encourage housing sector as it is one of the national priorities to provide shelter to one and all in the country. If a person waits for accumulating required funds to meet cost of the property which he intends to buy, he will not be in a position to enjoy living in own house during his young age. On the other hand,taking bank loans for acquiring house property in his young age entitles him to the pleasure of owning a property first and then repaying it comfortably by monthly installments.

What are the incentives for availing of bank loans for housing ?

Apart from the one stated above there are at least two more important incentives viz;

In the case of real estate, the rate of value appreciation surpasses the rate of money devaluation over a period of given time.

Housing being a priority area, Income tax rules envisage various benefits for its loan u/s 24B (deduction of loan interest from income) and u/s 80C (deduction of principal amount repaid ).

Which bank should I choose ?

Once it is decided to avail of bank finance, the next question is as to which bank to be approached. Although generally all banks are inclined to give loans for housing, a market study reveals that HDFC bank and State Bank Of India offer competitive rate of interest (ROI) which is the prime concern for any borrower.

In regard to seamless processing and service we may prefer HDFC bank to SBI; not only that, in HDFC bank the policies and conditions are rather transparent. Moreover, HDFC bank has a separate manager for loan sanctioning.

What are the loans that exist in the market for housing finance in Kerala?

At least some people think that Home loans are the only loans that can be availed of for acquiring a house property, which doesn’t conform to the facts. So, now let’s examine the types of loans available for this purpose.

A) Home Loans in Kerala

It goes without saying that when it comes to house properties in Kerala, home loans is the most advantageous one because of the lower ROI, longer span of repayment allowed and the tax incentives it offers.

When we come to HDFC bank/SBI the ROI is 8.35 % for women and 8.4 % for others.

Documents required to be submitted for applying for home loans are:

ID proof,

Proof of residence

Photograph

Statement of bank account for last six months

Statement of personal assets and liabilities

Licence issued by the local self governing body

Approved plan and estimate etc.

The property is to be equitably mortgaged to the bank. Eligibility factors are income and repayment capacity, income of spouse, assets and liabilities, continuity of occupation and age of the applicant.

Span of repayment which is 30 years maximum will be fixed as upto the retirement or attainment of 60 years whichever is earlier. In the case of income, it is to be noted, the bank will insist for income tax return and fix the eligible amount as four times the gross income as reduced by the amount of Income Tax paid or 80 % of the estimate whichever is less. Generally banks will see the CIBIL Score when a loan application is processed. If the score is below 700, the application is not likely to be considered.

B) Loan against property/Mortgage loan

Another type of loan which may be considered for housing finance in Kerala is ‘Loan against Property’ or ‘Mortgage loan’ which is sanctioned by banks on mortgage of any land with building.

Span of repayment allowed is 15 years; the eligibility is calculated as four times gross income as reduced by the IT paid or 50 % of the value of property whichever is less.

Normally, banks charge 1 % Processing fee.

In HDFC bank ROI is 9.8% to 12.5% p.a. If the customer is a valued one, they may sanction the loan at 9.8% p.a. However, most of the banks’ ROI is higher than this. In HDFC bank the minimum age of the borrower must be 24-25 years for salaried individuals whereas the maximum age for professionals is fixed as 65 years. In respect of self employed persons, minimum age of the business must be 3 years.

Apart from the usual income and residence proof and bank statements, job continuity proof and 3 years’ IT return are to be submitted. This type of loan can be utilized for any purpose including housing.

C) Personal Loan

Another type of loan that may be considered for financing housing needs is the Personal loan. Like Loan against property, Personal loan can be utilized for any purpose. Of course the rate of interest when compared to that of Home loan is higher viz;10.99% p.a.(minimum).

Although several banks have stopped Personal loan, HDFC bank still gives such loans on simple documentation such as latest salary certificate apart from other usual documents. Personal loans are given to borrowers in age group of 21-60 years working in private as well as public sectors. The applicant should have been in a job for 3 years out of which 1 year in the current employment. Moreover, net income of the prospective borrower should be Rs.15,000 per month.

D) House Furnishing loan, Construction loan

Apart from the aforesaid 3 types of loans, some banks/institutions give other loans such as House furnishing loans and Construction loans for housing finance in Kerala. Eg: Some banks give loans for furnishing houses already constructed. But in this case, generally the maximum loan has been limited to Rs.5 lakhs; ROI is around 11.5 p.a.

Similarly,Bajaj Finserve gives Construction loans which is a short term loan sanctioned for construction of building on one’s land. Here,the customer doesn’t get the whole amount of loan at a stretch. The loan amount is disbursed in stages according to the progress of construction.

E) Loan against NSC/KVP etc

Most of the banks give loans against NSC (National Savings Certificate)/KVP (Kisan Vikas Patra) etc on simple documentation. Banks charge ROI hovering around 12.5% p.a. at present. This amount of loan also can be utilized for any purpose including housing.